TIDMATMA
RNS Number : 3658N
ATLAS Mara Limited
25 October 2016
25 October 2016
Atlas Mara Limited Unaudited 3(rd) Quarter Results - Nine Months
Ended 30 September 2016
Atlas Mara Limited ("Atlas Mara" or the "Company" including its
subsidiaries, the "Group"), the sub-Saharan African financial
services group, today releases unaudited summary year-to-date
results for the nine months ended 30 September 2016.
Key financial highlights during the period
-- Total income increased by 15% (31% on a constant currency
(ccy) basis) which has largely been driven by an increase of 34% in
non-interest income (55% ccy). Net interest income decreased by 4%
in US$ terms but grew by 9% on a ccy basis.
-- Reported profit after tax for the nine months ended 30
September 2016 was $4.0 million, net of an adverse impact of $5.2
million from currency depreciation year-on-year. This compared to a
profit after tax of $7.1 million for the comparable period in 2015.
Improving business momentum demonstrated by the reported profit
after tax for the third quarter of $2.7 million which compares
favourably to the $1.2 million reported for H1 2016.
-- Expenses grew by 19% year-on-year with acquisitions the
principal reason for this increase. On a constant currency basis,
the increase in operating expenses was 33%. Excluding acquisitions,
the cost growth was limited to 6.5% ccy, a level below the average
rate of inflation ranging between 5% to 15% across our markets of
operation. The Company continues to focus on delivering cost
efficiencies while investing in growth initiatives such as treasury
and digital product and service offerings. Relative to our target
of $8 million of cost savings identified with the Q2 results, we
have already delivered annualized run-rate savings of $6 million in
the Shared Service and Centre and a further $4 million in our
operating countries.
-- On an adjusted operating profit basis (excluding one-off
items and M&A transaction expenses), Atlas Mara reported a
profit of $14.3 million for the nine months ended (2015: $23.7
million) and an adjusted cost-to-income ratio of 90.7% (2015:
79.9%). The adverse impact of currency depreciation on adjusted
operating profit was $4 million.
-- Deposits increased by 32% on a ccy basis, reflecting the
company's heightened liability management focus to acquire lower
cost deposits that are also behaviourally longer term. This
resulted in a reduction in cost of funds from 8.8% in Q3 2015 to
6.3% Q3 2016, amidst continued tightening local monetary policies.
Retail deposits now comprise 28% of the total deposit book versus
19% a year ago.
-- Loans and advances grew by 23% on a ccy basis. Excluding
acquisitions, the rate of growth was muted at 1% on a group
consolidated basis, in line with a revised country-specific risk
appetite focus and growth opportunities in each market. Some
markets have seen positive growth between 14% to 22% in their asset
portfolios, whilst others have seen a similar rate of decline as we
reposition our balances sheets in line with our diversification
risk strategies. Our emphasis on managing down higher risk
portfolios in certain countries where we have a cautious credit
risk appetite was offset by volume growth in other territories.
-- NPLs as a percentage of the loan book at 14.9% (Q3 2015:
15.4%) remain above market averages and have been steadily
improving. Our consolidated group NPL ratio is inflated by the
level of NPLs currently accounted for in Zimbabwe. The inclusion of
FBZ also led to a modest increase in reported NPLs. Asset
recoveries totalled $4 million for the nine-month period reflecting
continued focus to deliver shareholder value through managing the
asset portfolio end-to-end.
-- Union Bank of Nigeria Plc ("UBN") contributed associate
income of $15.8 million for the period, reflecting Atlas Mara's
31.15% shareholding on an equity accounted basis. Naira
depreciation of 12% during Q3 has moderated this contribution, with
the associate contribution growing by 24% on a ccy basis.
-- Reported equity at period end was $559 million, a decline of
$66 million from 31 December 2015, largely due to $95 million of
foreign exchange translation losses principally driven by the
strengthening of the US Dollar against the Nigerian Naira and
Mozambique Meticais. Book value per share was $7.77 at 30 September
2016 (compared to $8.07 at 30 June 2016). Tangible book value per
share was $6.15 at 30 September 2016 ($6.07 at 30 June 2016).
Key operational highlights during the period
-- The build-out of our onshore treasury and markets business
continues to make excellent progress with a notable uplift in
revenue to $26.3 million from $12.4 million a year ago, reflecting
the greater scale of our operations, increased client numbers and
diversification of revenue streams.
-- Atlas Mara has been implementing a cost reduction programme
in its Shared Services & Centre operations with the intention
of delivering run-rate cost savings of c.$8 million per annum from
2017. As part of this, the group has taken out a management layer
between the Atlas Mara holding company and its directly owned
intermediate bank holding company, BancABC Holdings.
-- We continue to make strong progress in the development of our
digital initiatives. Our corporate transactional internet banking
service has gone live in Botswana with positive reception from
clients. A similar project is underway in Mozambique. Point-of-sale
acquisition is live in Zimbabwe with 86 merchants having signed up
in the last two months. We expect Zambia and Mozambique to be live
on the system by the end of October. Notably, we also gained
license approvals for issuance and acquiring from MasterCard, VISA
and Union Pay International in the third quarter which will allow
us to accelerate our card strategy.
-- In Rwanda, the company's 62% owned subsidiary, BPR, has
announced a restructuring and repositioning programme that was
envisaged at the time of acquisition to improve profitability,
address historic loss of market share and to move the business from
being primarily retail-oriented towards a more balanced retail and
corporate customer base. Upon completion of this transformation
programme, we expect to have a state-of-the-art infrastructure and
unmatchable branch banking capability across Rwanda and are excited
about the growth opportunity in that market.
-- In Zambia, the integration of Finance Bank Zambia is
progressing well with the combined executive leadership team from
BancABC and FBZ having already been identified. Cost synergies we
anticipated ahead of acquisition have been validated and the merger
is targeted to complete before year end.
-- In Botswana, BancABC gained recognition of their pioneering
efforts in the card space with the African Banking Corporation of
Botswana Visa Card Warrior Award. This was a result of BancABC
being the first prepaid card issuer in Botswana and also as the
only bank to have co-brand partnerships (Orange Money and Botswana
Life Insurance). The sub-Saharan African (SSA) region has not fully
embraced the benefits that co-branded partnerships can bring and we
are pleased that BancABC has successfully demonstrated its ability
to innovate by attacking this competitive space.
Commenting on the results, John Vitalo, CEO, said:
"I am pleased with the progress we have made in reshaping the
business to respond to a more challenging macroeconomic
environment. Our strategy of buying, protecting and growing
sub-Saharan Africa banks hasn't changed. What has changed is how we
are going about achieving our objective of becoming the region's
premier financial institution. We have been emphasising cost
controls, streamlining operations and growing our digital
initiatives and our markets and treasury business as a key focus
during Q3 and will continue this focus for the rest of the year and
into 2017.
Our Q3 results demonstrate that we are on the right path. Our
Markets and Treasury business grew by more than a 100% to
contribute $26 million to revenue this year. Of the projected $8
million cost savings that were announced in our half year results,
$10 million has been achieved within both the Shared Services and
Centre and Country operating level. We expect the improving trend
in the profitability of our business attained over the last two
quarters to continue as we execute on our focused strategy. We
remain enthused and are geared to benefit from the long term growth
in sub-Saharan Africa."
Outlook
Although uncertainty around the economic environment, exchange
rates and monetary policies in our markets make near term forecasts
difficult, we expect the improving operational momentum in our
business that has been a feature of 2016 to continue.
Investor Conference Call
Atlas Mara's senior management will today be holding a market
update for investors at 10am EST / 3pm BST. There will be a
presentation available in the Investor Relations section of the
Company's website, http://atlasmara.com.
The Company will not be disclosing any new material
information.
Dial-in details are as follows:
- Conference ID: 2706696
- US: 1 8669265708 / 1 6316215256
- UK: 08448 719 299
- International: +44 (0) 1452 560304
Contact Details
Investors
John-Paul Crutchley, +971 4 275 6025
Kojo Dufu, +1 212 883 4330
Media
Teneo Blue Rubicon, +44 20 7420 3142
Anthony Silverman
About Atlas Mara
Atlas Mara was listed on the London Stock Exchange in December
2013. Atlas Mara's vision is to create sub-Saharan Africa's premier
financial services institution through a combination of its
experience, expertise and access to capital, liquidity and funding.
Its goals are to combine the best of global institutional knowledge
with extensive local insights and to support economic growth and
financial inclusion in the countries in which the Company
operates.
Summary of Results (Unaudited, unless otherwise noted)
Atlas Mara Limited Reported Reported Constant Audited
Results Comparative Currency(1) Year
End
30.09.16 30.09.15 Variance 31.12.15
$'m $'m % $'m
Adjusted operating
profit and reconciliation
to IFRS profit
Total income 177.1 154.4 31.4% 205.2
Loan impairment
charge (13.3) (8.8) (69.5%) (12.0)
Operating expenses (160.6) (123.4) (47.9%) (174.2)
Share of profit
of associates 15.6 15.1 24.2% 20.3
Adjusted profit
before tax 18.8 37.3 (39.2%) 39.3
Adjusted profit
attributable to
ordinary shareholders 14.3 23.7 (27.3%) 24.9
M&A transaction
costs (6.8) (7.8) 12.8% (11.9)
Reorganisation/Restructuring
costs (7.9) (15.9) 50.6% (7.6)
Reported profit
before tax 4.1 13.5 (42.5%) 19.2
Reported profit
attributable to
ordinary shareholders 4.0 7.1 >100% 11.3
Statement of financial
position
Loans and advances 1,402.1 1,184.6 22.6% 1,229.4
Total Assets 2,830.7 2,421.6 20.4% 2,452.1
Total Equity 559.4 605.9 (5.9%) 625.5
Total Liabilities 2,271.3 1,815.7 29.1% 1,826.6
Total Deposits 1,797.0 1,424.6 31.5% 1,436.1
Number of Shares
Outstanding 69,441,905 70,125,665 70,472,024
Key Performance
measures
Net interest margin 3.6% 4.3% 4.3%
Credit loss ratio 1.3% 1.0% 1.0%
Adjusted cost
to income ratio 90.7% 79.9% 85.2%
Reported cost
to income ratio 99.0% 95.3% 94.7%
Adjusted return
on equity 3.4% 4.8% 3.8%
Reported return
on equity 1.0% 1.4% 1.7%
Adjusted return
on assets 0.7% 1.3% 1.0%
Reported return
on assets 0.2% 0.4% 0.4%
Loan to deposit
ratio 78.0% 83.1% 85.6%
Book value per
Share ($) 7.77 8.73 8.94
------------------------------- ----------- ------------- ------------- -----------
(1) Constant currency variances reflect the operational variance
(either positive or (negative)) period-on-period excluding the
impact
of foreign currency translation, due to the U.S. Dollar
strengthening against all of the relevant African currencies. By
way of
example: Total Income for Q1-Q3 2016 would have reflected
positive growth of 31.4% compared to the prior period had it
not
been for the impact of foreign exchange translation.
Atlas Mara Limited
Consolidated summary statement of financial position
Quarterly Period ended 30 September
Q1 2016 Q2 2016 Q3 USD million 2016 2015 CC Var
2016 %
Cash and short
345.0 448.3 399.2 term funds 399.2 367.1 12.4%
Financial assets
143.5 160.4 163.6 held for trading 163.6 175.9 (7.6%)
Loans & advances
1,339.4 1,421.0 1,402.1 to customers 1,402.1 1,184.6 22.6%
110.9 181.9 155.3 Investments 155.3 33.3 >100%
Investment in
422.1 324.3 312.4 associates 312.4 390.8 1.7%
Intangible
153.5 166.8 148.2 assets 148.2 142.2 (37.7%)
163.3 244.1 249.9 Other assets 249.9 127.7 92.9%
-------------- ------------- ------- ---------------- ------------------ ------------------ --------------
2,677.8 2,946.7 2 830.7 Total assets 2 830.7 2 421.6 20.4%
-------------- ------------- ------- ---------------- ------------------ ------------------ --------------
Customer
1,628.8 1,814.9 1,797.0 deposits 1,797.0 1,424.6 31.5%
298.3 343.0 329.6 Borrowed funds 329.6 291.0 19.1%
Other
89.1 211.5 144.7 liabilities 144.7 100.1 25.4%
Capital and
661.7 577.3 559.4 reserves 559.4 605.9 (5.9%)
-------------- ------------- ------------------ ------------------
Total equity and
2,677.8 2,946.7 2,830.7 liabilities 2,830.7 2,421.6 20.4%
-------------- ------------- ------- ---------------- ------------------ ------------------ --------------
Loan: Deposit
82.2% 78.3% 78.0% ratio 78.0% 83.1%
-------------- ------------- ------- ---------------- ------------------ ------------------ --------------
Basis of Presentation
Overview
The term "Atlas Mara", "the Company" or "Group" refers to Atlas
Mara Limited and its subsidiaries and associates. This release
covers the unaudited consolidated results for the Group for the
nine months ended 30 September 2016.
Unless otherwise stated, the financial information for the
nine-month period ended 30 September 2016 is set out in this
release on a basis consistent with International Financial
Reporting Standards, as adopted by the EU (IFRS) and consistent
with the group accounting policies as disclosed in the 2015 annual
report.
Unaudited results for the nine months ended 30 September
2016
Review of statement of comprehensive income
Net interest income
Q1-Q3 2016: $75.5 million
Q1-Q3 2015: $78.7 million
Net interest income grew by 8.8% on a constant currency basis.
However, due to the weakening of a number of African currencies
against the US Dollar over the last year, reported net interest
income in US$ terms decreased by 4%, resulting in a reported net
interest margin (or "NIM") on total assets of 3.6% at 30 September
2016, versus 4.3% reported at September 2015. Net interest margin
on earning assets was approximately 4.7% for Q1-Q3 2016, a decrease
from 6.0% for the comparative period on the same basis.
Market liquidity pressures, specifically relating to local
currency shortages in selected markets, has continued to result in
pressure on the cost of funding and loan growth across certain
markets. Notwithstanding this, Atlas Mara's banking subsidiaries,
excluding Tanzania, have all seen a reduction in their cost of
funding and hence an improvement in NIMs, albeit with the
improvement somewhat slower than expected. The continued focus on
liability growth, in particular campaigns to increase the retail
deposit base, will over time ensure sustainable improved margins
across these entities.
Net interest income constituted 42.6% of total income for the
Group, a decrease from the 51% reported for the comparative period,
reflecting particularly strong growth in non-interest income which
was supported by certain one-off gains.
Non-interest income
Q1-Q3 2016: $101.6 million
Q1-Q3 2015: $75.7 million
Non-interest income increased by 55.4% on a constant currency
basis to $101.6 million in 2016 (2015: $75.7 million) and this is
supported by fair value gains of $25.1 million posted year to date
following the devaluation of the Naira in June 2016 and a purchase
gain on acquisition of Finance Bank Zambia.
There was a notable uplift in trading revenue to $26.3 million
from $12.4 million a year ago, reflecting the build out of our
onshore treasury capability and diversification of revenue
streams.
Operating expenses
Q1-Q3 2016: $175.3 million
Q1-Q3 2015: $147.1 million
Cost growth on a constant currency basis was 32.5% (6.5%
excluding the impact of the acquisition of BPR and FBZ. The Group
continues to focus on driving efficiencies while concurrently
investing in various growth initiatives across the platform.
Total M&A transaction and one off expenditures of $14.7
million year-to-date compares with the $23.7 million incurred
during the same period in 2015. This decline is consistent with
previously communicated expectations that these expenses will
decrease over time. Included in the above amount is $7.9 million
for restructuring and reorganization. These are associated with the
integration of the newly-acquired banks in Rwanda and Zambia
amounting to $6.4 million and a further $1.5 million of redundancy
costs associated with the right sizing of the Shared Services &
Centre.
Staff costs amounted to $79.8 million for the period and
represented 45.5% of total expenditure for the Group, in line with
the 2015 ratio for the comparable period (39%).
Specific technology investment and business improvement
expenditure of $9.4 million are further cost items expensed during
2016, which will benefit the Group over the longer term but do not
meet the criteria to be capitalised.
For comparative purposes, given the non-recurring nature of
selected expenses related to the Company's formative period, Atlas
Mara also provides "adjusted" figures, excluding one-off items and
M&A transaction expenses. On this basis, Atlas Mara reported a
cost to income ratio of 90.7% (Q3 2015: 79.9%) versus 99.0% (Q3
2015: 95.3%) on an IFRS-compliant basis.
The table below provides an analysis of the change in our cost
base over the year to identify the impact of acquisitions and other
one-off costs on our cost base.
Sep-16 Sep-15 FX var Opera-tional Total Constant Total
$m $m $m var $m Var $m ccy Var
Var
%
%
Total expenses 175.3 147.1 14.8 (43.0) (28.2) (32.5%) (19.2%)
Less: Acquisitions (37.0) (2.7) (0.2) 34.5 34.3 >(100%) >(100%)
Rwanda (27.8) (2.7) (0.2) 25.3 25.1 >(100%) >(100%)
FBZ (9.2) 0.0 9.2 9.2 (100%) (100%)
Total expenses
(excl. acquisitions) 138.3 144.4 14.6 (8.5) 6.1 (6.5%) 4.2%
Less: Once - off expenditure (14.9) (23.7) 0.0 (8.8) (8.8) 37.3% 37.3%
M&A transaction expenses (6.8) (7.8) 0.0 (1.0) (1.0) 12.8% 12.8%
Reorganising/restructuring costs (8.1) (15.9) 0.0 (7.8) (7.8) 49.3% 49.3%
Total expenses
(excl. acq & one - off) 123.4 120.7 14.6 (17.3) (2.7) (16.3%) (2.3%)
Income from associates
Q1-Q3 2016: $15.6 million
Q1-Q3 2015: $15.1 million
Income from associates of $15.6 million represents an estimate
of the equity-accounted earnings of Atlas Mara's 31.15% stake in
UBN for the period ended (2015: $15.1 million) and share of losses
from other minorities in the group of ($0.2 million). UBN's Q3
results will be published on 26 October 2016.
Loan impairment charge
Q1-Q3 2016: $13.3 million
Q1-Q3 2015: $8.8 million
The nine month 2016 loan impairment charge was $13.3 million,
largely driven by continued challenging macro-economic conditions
in Zimbabwe, and the inclusion of FBZ in Zambia in the 3(rd)
quarter. This, coupled with subdued asset recoveries during Q3 2016
has resulted in the higher impairment percentage ratio relative to
2015. Towards the end of Q3, a number of additional asset
recoveries, expected to realize in Q4, were progressed in Tanzania,
Zambia and Zimbabwe. Excluding the NPL book in Zimbabwe, the group
consolidated NPL ratio of 14.9% as at Q3 2016 (2015: 15.4%)
regularises to 10.7% (2015: 11.7%).
The conclusion of the IFRS 3 Business Combinations fair value of
loans and advances is likely to result in a lower reported
impairment number for the full-year as losses existing at
acquisition are reversed. The Special Operations Unit, focused on
recoveries of NPLs that were acquired at acquisition, continues to
focus on asset restructuring and resolution, with a good pipeline
of such recoveries expected during Q4 2016. Recoveries for the
first nine months of 2016 totalled $4.0 million (Q3 2015: $17.5
million).
The Group expects credit quality ratios to improve and the
arrears book to decline in both volume and value compared to
December 2015. The coverage ratio has improved to approximately
50.6% during Q1-Q3 2016 versus 42.8% at December 2015.
Review of statement of financial position
Total assets: $2 830.7 million
Customer loans: $1 402.1 million
Total deposits: $1 797.0 million
Customer loans and advances contributed approximately 49.5% of
the total asset base, with cash, short-term funds and marketable
securities representing approximately 25.6%. Goodwill and
intangible assets approximately 5.2%. The investment in associates
(UBN) represented 11.0% of the asset base. Property and equipment
and other assets made up the remaining 8.7%.
Credit Quality
In management's view, the customer loan book is adequately
provided for, as reflected in the year-to-date 2016 provision
coverage ratio of 50.6% (Q3 2015: 62.7%, which excludes 2014 IFRS
adjustments). NPLs as a percentage of the loan book at 14.9% (Q3
2015: 15.4%) are above market averages and management's medium-term
guidance but have been steadily improving. The Special Operations
Unit has been responsible for the positive downward trend in the
cost of credit debited against the statement of comprehensive
income. The Group remains focused on recovering as much as possible
of the legacy or acquired non-performing loan book over the next
few years.
Goodwill and Intangibles
Following the acquisitions made during 2014/15 and 2016 and in
compliance with IFRS 3: Business Combinations, the statement of
financial position reflected a goodwill asset of $77.3 million and
an intangible asset of $70.9 million. Intangible assets are
amortized over a 10-year useful life. In aggregate these assets
represented 5.2% of the Group's asset base at 30 September 2016,
resulting in a tangible book value of $6.15 per share.
Investment in associate: UBN
The investment in UBN is equity accounted for in the statement
of financial position as an investment in associate, with a closing
balance of $310.2 million. The year-to-date results were based on
the UBN nine month results and using an average Naira exchange rate
for the year to date of NGN 237.2. Atlas Mara holds, directly and
indirectly, an effective 31.15% shareholding in UBN.
Liabilities
Deposits due to customers: $1 797.0 million
Borrowed funds: $329.6 million
Assets are funded mainly through corporate depositors,
government-backed institutions and interbank funding lines (52.9%
of total deposit base). The retail liability base of 28% of total
deposits represents an improvement from 20.8% as at FY 2015 and is
indicative of efforts to diversify the funding mix so as to support
healthier margins in the longer term. The renewed focus on
attracting retail deposits has been coupled with an emphasis on
accessing lower cost development finance institution ("DFI")
funding through strong partnerships.
Capital and Liquidity
All operating banks are within prescribed local regulatory
requirements for both liquidity ratios and capital adequacy. Atlas
Mara remains vigilant in its focus on optimizing financial
stability and attractive, sustainable returns on equity.
Segmental Information
The segmental results and statement of financial position
information are representative of Atlas Mara's management of its
underlying operations and consistent with the Group's emphasis on
alignment of its operations with sub-Saharan Africa's key trading
blocs. The business is managed on a geographic basis with an
increased focus on underlying business line performance.
Segmental Results
Southern Segment
Southern Africa includes the operations of BancABC excluding
Tanzania namely Botswana, Mozambique, Zambia and Zimbabwe and
BancABC's holding company, ABC Holdings Limited (incorporated in
Botswana), Finance Bank Zambia and various affiliated non-bank
group entities. The financial performance of the Southern region
year-to-date was supported by asset recoveries emanating from
continued management efforts, particularly the increased focus on
non-performing loans and the establishment of new collections
activities.
East Africa
East Africa consists of Rwanda and Tanzania.
West Segment
West Africa represents the investment made in UBN, adjusted for
attributable equity earnings. Our investment in UBN is continuing
to perform in line with expectations. Atlas Mara has reflected its
associate income of $15.8 million in its year-to-date 2016 results
(2015: $15.1 million). The depreciating Naira had a negative impact
of around 16.7% on associate earnings (in U.S. Dollar terms) for
the period.
UBN's impairments and provisions are deemed sufficient for the
risk assets included in its portfolio. UBN management and its Board
of Directors continue to monitor the implications of the economic
headwinds, and the growth of risk assets within a revised credit
risk appetite framework. Atlas Mara is represented through its
three seats on UBN's Board of Directors. We remain confident on the
long-term positive growth potential for UBN irrespective of the
near-term challenges in the macroeconomic environment.
Shared Services & Centre ("SSC")
SSC includes Atlas Mara Limited, the BVI incorporated holding
company, operating through its Dubai management office, and all
other intermediate group holding entities acquired in connection
with acquisitions of ABCH and ADC in August 2014. The legal entity
structure is in the process of being streamlined with the objective
of driving further cost efficiencies.
M&A, ADC, Consol
This includes all merger and acquisition and ADC related items.
Accounting consolidation adjustments are also presented within this
segment.
Segmental results are presented below:
BANKING OPERATIONS OTHER
--------- -------------------------------------- ---------------------
Atlas Mara Reported West East Southern Atlas M&A,
Limited Mara ADC,
Segmental Shared Consol
Financial Services
statements & Centre
--------- ---------- ---------- --------- ---------- ---------
Statement of 30.09.16 30.09.16 30.09.16 30.09.16 30.09.16 30.09.16
comprehensive
income
$'m $'m $'m $'m $'m $'m
Net interest
income 75.5 - 30.9 56.7 (3.5) (8.6)
Non-interest
revenue 101.6 - 8.8 58.9 12.7 21.2
Total income 177.1 - 39.7 115.6 9.2 12.6
Loan impairment
charge (13.3) - (1.6) (12.4) - 0.7
Net income from
associates 15.6 15.8 - (0.2) - -
Total operating
income 179.4 15.8 38.1 103.0 9.2 13.3
Operating
expenses (168.5) - (38.8) (100.6) (25.1) (4.0)
Transaction and
integration
expenses (6.8) - - - (0.5) (6.3)
Profit/(loss)
before taxation 4.1 15.8 (0.7) 2.4 (16.4) 3.0
Taxation (0.1) - (0.2) (1.0) - 1.1
Profit/(loss)
after taxation 4.0 15.8 (0.9) 1.4 (16.4) 4.1
Ordinary
shareholders 4.0 15.8 (1.0) 1.4 (16.4) 4.2
Non-controlling
interests - - 0.1 - - (0.1)
BANKING OPERATIONS OTHER
Atlas Mara Reported West East Southern Atlas M&A,
Limited Mara ADC,
Segmental Shared Consol
Financial Services
statements & Centre
--------- ---------- --------- ----------------- --------- ---------
Statement of 30.09.16 30.09.16 30.09.16 30.09.16 30.09.16 30.09.16
financial
position
$'m $'m $'m $'m $'m $'m
--------- ---------- --------- ----------------- --------- ---------
Assets 2 830.7 310.2 471.2 1 887.1 730.1 (567.9)
------------------ --------- ---------- --------- ----------------- --------- ---------
Cash and short
term funds 399.2 - 63.4 325.8 4.6 5.4
Trading and other
financial assets 324.4 - 69.6 258.0 - (3.2)
Loans and
advances 1 402.1 - 296.2 1 090.5 - 15.4
Intangible assets
and goodwill 148.2 - 5.2 19.4 652.3 (528.7)
Investment in
associates 312.4 310.2 1.2 1.0 - -
Other assets 244.4 - 35.6 192.4 73.2 (56.8)
Liabilities 2 271.3 - 402.1 1 796.5 80.6 (7.9)
------------------ --------- ---------- --------- ----------------- --------- ---------
Deposits 1 797.0 - 362.6 1 418.7 - 15.7
Borrowed funds 329.6 - 6.2 282.4 59.6 (18.6)
Derivative
liabilities 10.0 - 4.5 5.4 - 0.1
Other liabilities 134.7 - 28.8 90.0 21.0 (5.1)
Total equity 559.4 310.2 69.1 90.6 649.5 (560.0)
------------------ --------- ---------- --------- ----------------- --------- -----------
Net interest
margin 3.6% 8.7% 4.0%
NII as % of total
income 42.6% 77.8% 49.1%
Credit loss ratio 1.3% 0.7% 1.5%
Loan to deposit
ratio 78.0% 81.7% 76.9%
BANKING OPERATIONS OTHER
--------- ------------------------------- ---------------------
Atlas Mara Limited Reported West East Southern Atlas M&A,
Segmental Mara ADC,
Financial statements Shared Consol
Services
& Centre
--------- --------- --------- --------- ---------- ---------
Statement of 30.09.15 30.09.15 30.09.15 30.09.15 30.09.15 30.09.15
comprehensive
income
$'m $'m $'m $'m $'m $'m
Net interest
income 78.7 - 17.9 69.4 (0.5) (8.1)
Non-interest
revenue 75.7 - (0.1) 54.6 (1.0) 22.2
Total income 154.4 - 17.8 124.0 (1.5) 14.1
Impairments (8.8) - 0.5 (9.3) -
Net income from
associates 15.1 15.1 - - -
Total operating
income 160.7 15.1 18.3 114.7 (1.5) 14.1
Operating expenses (139.3) - (14.3) (95.3) (22.3) (7.4)
Transaction and
integration expenses (7.8) - - - (7.8)
Profit/(loss)
before taxation 13.6 15.1 4.0 19.4 (23.8) (1.1)
Taxation (4.9) - (0.3) (6.0) 1.4
Profit/(loss)
after taxation 8.7 15.1 3.7 13.4 (23.8) 0.3
Ordinary shareholders 7.1 15.1 2.1 13.4 (23.8) 0.3
Non-controlling
interests 1.6 - 1.6 - - -
Statement of financial position
Shared M&A,
Services ADC,
Reported West East Southern & Centre Consol
30.09.15 30.09.15 30.09.15 30.09.15 30.09.15 30.09.15
$'m $'m $'m $'m $'m $'m
--------- --------- --------- --------- ---------- ---------
Assets 2 421.6 17.9 227.7 1 636.8 704.9 -165.7
Cash and short
term funds 367.1 - 46.9 310.1 5.4 4.7
Trading and other
financial assets 209.8 - 36.5 145.1 25.7 2.5
Loans and advances 1 184.6 - 129.4 1 060.5 - -5.3
Intangible assets
and goodwill 142.2 - 0.8 6.9 591.9 -457.4
Investment in
associates 390.8 17.9 0.2 1.3 - 371.4
Other assets 127.1 - 13.9 112.9 81.9 -81.6
Liabilities 1 815.7 - 195.7 1 539.2 49.5 31.3
Deposits 1 424.6 - 172.8 1 251.8 -
Borrowed funds 291 - 17.9 241.8 20.5 10.8
Disposal groups
held for sale - - - - - -
Derivative liabilities 3.5 - 2.2 1.3 - -
Other liabilities 96.6 - 2.8 44.3 29 20.5
Total equity 605.9 17.9 32 97.6 655.4 -197
Performance measures
Net interest margin 4.30% - 10.50% 6.00% - -
Credit loss ratio 1.00% - -0.50% 1.20% - -
Loan to deposit
ratio 83.10% - 74.90% 84.70% - -
Forward Looking Statement and Disclaimers
This announcement does not constitute or form part of any offer
or invitation to purchase, otherwise acquire, issue, subscribe for,
sell or otherwise dispose of any securities, nor any solicitation
of any offer to purchase, otherwise acquire, issue, subscribe for,
sell, or otherwise dispose of any securities.
The release, publication or distribution of this announcement in
certain jurisdictions may be restricted by law and therefore
persons in such jurisdictions into which this announcement is
released, published or distributed should inform themselves about
and observe such restrictions.
Certain statements in this announcement are forward-looking
statements which are based on Atlas Mara's expectations, intentions
and projections regarding its future performance, anticipated
events or trends and other matters that are not historical facts,
including expectations regarding (i) the future operating and
financial performance of the Company. These statements are not
guarantees of future performance and are subject to known and
unknown risks, uncertainties and other factors that could cause
actual results to differ materially from those expressed or implied
by such forward-looking statements.
Given these risks and uncertainties, prospective investors are
cautioned not to place undue reliance on forward-looking statements
and the actual events or consequences may differ materially from
those contained in or expressed by such forward-looking statements.
Forward-looking statements speak only as of the date of such
statements and, except as required by applicable law or regulation,
Atlas Mara expressly disclaims any obligation or undertaking to
update or revise publicly any forward-looking statements, whether
as a result of new information, future events or otherwise.
This information is provided by RNS
The company news service from the London Stock Exchange
END
QRTGLBDGIBDBGLU
(END) Dow Jones Newswires
October 25, 2016 02:35 ET (06:35 GMT)
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